Apple Invests Record $11B In Purchases, Has Highest Margins in Asia


This week Morgan Stanley analyst Kate Huberty released "10-Q Tidbits", conclusions based on Apple's 10-Q form filing with the U.S. Securities and Exchange Commission.

Kate found that Apple is going to spend $11 billion on components and other purchases in the March quarter, which is a record $3,1 billion (39%) increase in comparison to the end of 2010.

"We believe the increase is attributable to procurement ahead of a tight supply environment and expected shipment increases in June (iPad) and September (iPad + iPhone)".

Apple has agreements with component suppliers that expire in 2022 and total about $2 billion.

Kate Huberty also explained why Apple's operating margins in the Asia are the highest.


Asia/Pacific region



Operating margins




"We think Apple has the opportunity to replicate its success in China and other emerging markets and the potential introduction of a lower priced iPhone in 2012 should help accelerate growth in emerging markets".

Last quarter Apple's revenue in Asia/Pacific region rose 151% and Mac sales increased 76%.

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Written by SimplyMax

Monday, April 25, 2011. 18:10

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